Corporación Nacional del Cobre de Chile, Codelco, is the world's top copper producer and one of the most profitable companies in the industry. It has one of the largest copper reserves on the planet, cutting-edge knowledge and technology, and it also has an organization and business model that promotes value creation.
Codelco's key goal is to maximise its delivery of economic contributions to the Chilean State, in addition to being a company that has passion for safety, ensures productivity, is concerned about sustainability, it is responsible and focuses on taking action.
It has new key capital projects. Its employees are highly productive, committed to the future of the company and proud of Codelco. It fosters excellent relationships with the trade unions and is developing next generation leaders for the company.
It has assets totalling US$ 20.835 billion and its equity at the end of 2011 reached US$ 6.065 billion.
Its main commercial product is Grade A copper cathodes .
Operations
The Company today has five mining divisions: Chuquicamata, Radomiro Tomic, Salvador, Andina and El Teniente. Since May 2005, Ventanas Smelter and Refinery Division is Codelco's sixth division. As of May 2008, it incorporated Minera Gaby S.A., a wholly owned subsidiary. In 2010, it created Ministro Hales Division; its mine is currently under construction.
Codelco also has a 49% interest in the copper company Sociedad Contractual Minera El Abra, and it also has interest in other mining ventures focused on exploration and technological development. Additionally, the Company carries out mineral exploration in Chile, Brazil and Ecuador.
Products
- Grade A copper cathodes
- Copper concentrate
- Molybdenum
- Anodic bars
- Sulphuric acid
- Copper wire (semi-finished product)
Business Pillars
Codelco is a company with a mining heritage in Chile, that contributes to national and world engineering with innovation and the best professional staff. Codelco's business principles aim to develop efficient, innovative, transparent and responsible mining.
The company management aims to ensure medium and long-term competitiveness, introducing new technologies, streamlining the organisation and improving the decision-making process.
The responsible performance of Codelco also focuses on keeping its reputation and world leadership position to continue operating both in Chile and overseas.
As a state-owned company, it strives to work as best as possible to produce applying the highest standards of the industry, protecting the licence to operate in accordance with the world market requirements and taking care of how management is conducted.
Sustainability is one of the Company's strategic goals and priorities, and it includes occupational health and safety; the environment; community management; efficient use of natural resources, and defence and development of markets.
Leading Presence
Codelco is a state-owned company that produces copper and high-quality by-products; it has low costs and is constantly growing. It explores, develops and processes these mineral resources to market them in Chile and in the rest of the world.
In 2011, Codelco produced 1,796,169 metric tonnes of fine copper, including its stake in El Abra mine. This is equivalent to 11% of the 2011 global mine copper output and 34% of domestic production during this period.
Additionally, the Company is one of the world's top producers of molybdenum; in 2011 it produced 23,098 metric tonnes of fine molybdenum.
Copper Reserves
Codelco has l9% of the world's copper reserves. At the current production rate, its mining operations have an estimated useful life of 65 years.
Financial Strength
Easy access to both domestic and international capital markets, at competitive prices, significantly contributes to financing the Company's funding programme, and, therefore, it is an integral part of Codelco's longterm strategy.
A prudent funding policy, the good results obtained, the Company's competitive advantages and a favourable market outlook are reflected in the investment grade credit rating that Codelco has maintained consistently over time.
Stable & Diverse Customers
Codelco has developed long-term relationships with a stable and geographically diverse customer base, including some of the world's major manufacturing companies.
Technology & Innovation
Codelco is a leader in innovation, constantly incorporating new technologies in it processes.
The Company understands the contribution made by innovation, breakthroughs and technological development as tools that increase competitiveness. That is why it is developing more underground mines in order to generate more productivity in the pits; it develops technology thinking in people's safety; it looks for more demanding environmental standards and the efficient use of key inputs, such as energy and water.
It is also the largest customer of electricity in the country; therefore the company has an important role in developing new energy sources and non-conventional, renewable energy projects.
Codelco is working on and promoting the development of innovations in the mining-metallurgical processes and is implementing actions for generation change; and on attracting, retaining and managing talent.
Explorations and Internationalisation Process
Codelco, in its more long-term outlook, continues to permanently focus on exploration, both nationally and internationally, in order to maintain and expand its mineral base.
Its vast experience and professional quality in this field is a solid base for exploring new deposits in Chile and overseas.
Codelco's explorations both inside and outside Chile are conducted in accordance with the high standards of a top mining company, that respects the communities where it has operations, fully complies with local legislation and applies the same values and business principles it has in Chile.
Future of Codelco
The Company's major challenge is to implement a set of structural projects, in line with the timeline, budget, quality, capacity and promised results, which will enable it to continue generating wealth for Chile. These engineering developments will be the basis that will enable it to maintain its leadership in the future and are a necessary condition to ensure Codelco's sustainability.
These structural projects imply major changes for the Company and require huge investments. Codelco is the company that invests the most in Chile, with approximately US$ 27 billion for the 2012-2016 period (currency budget 2011).
Vision and Strategy
The raison d'être of Corporación Nacional del Cobre de Chile, Codelco, is to continue being the world's top copper producer and the company that contributes the most to Chile's development and to the area surrounding its operations.
The Company has a team of men and women committed to the company's leadership in the mining industry in Chile and the world, to support progress, the country's development and cover the needs of the most vulnerable members of Chilean society.
At Codelco we endeavour to make the corporate hallmark: no fatalities, excellence in processes, passion for safety, quality of our products, financial strength, ongoing innovation and collective work.
Codelco promotes teamwork, responsible participation and contribution based on different experiences and employee organisations.
Codelco is the largest mining company and pride of Chile
Shared Values
The Statement of Values guides all the business decisions made and directs the behaviour of everyone who works at Codelco, besides the specific roles they have on a daily basis.
Everyone who works at Codelco strives to meet commitments and be recognised for how they do things.
The Codelco Values and Code of Business Conduct inspire a conduct in line with the company's standards and principles. Codelco's values are:
- Respect for the Life and dignity of all Individuals
Respect for the life and dignity of all individuals is a central value. Nothing justifies taking uncontrolled risks that threaten our health and safety. - Responsibility & Commitment
To work for Codelco is an honour, a great responsibility and huge commitment. - Person's Competence
We value and recognise competent employees, with initiative and leadership, who confront changes with decision and courage. - Teamwork
We promote teamwork, responsible participation and contribution from varied experience and employee organizations. - Excellence at Work
We strive for excellence in everything we do and we engage in the practice of ongoing improvement to be one of the best in the industry. - Innovation
We are a creative company, innovating to generate new knowledge, create value and improve our leadership. - Sustainable Development
We are committed to sustainable development in our operations and projects.
Constitution and Legal Framework
Codelco is owned by the Chilean State and it is dedicated to mining, trading and industrial activities. Decree Law No. 1,350 (1976) created Corporación Nacional del Cobre de Chile, Codelco Chile, that took over the management of large-scale mines nationalised in 1971.
Codelco reports to the Government through the Ministry of Mining and is governed by ordinary legislation, except for specific provisions included in the aforementioned decree.
Through Law 20,392, published in the Official Gazette on 14 November 2009, the Basic Bylaws of Codelco Chile (D.L. 1,350, 1976) and current mining property regulations (Law 19.137) were amended. It came into force on 1 March 2010
Trade Name
Corporación Nacional del Cobre de Chile. RUT: 61.704.000-K.
Management
On 1st March 2010, date when Law 20,392 entered into force, Codelco's Corporate Governance changed, whereby its management is exercised by a Board constituted as follows:
- Three members appointed by the President of the Republic;
- Two members representatives of Codelco employees, appointed by the President of the Republic based on separate shortlists of candidates, for each position, on the one hand, presented by the Copper Workers' Federation and, on the other, jointly presented by the Copper Workers' Federation and the National Association of Copper Supervisors, and
- Four members appointed by the President of the Republic, based on a shortlist presented for each position by the Senior Public Management Council, with a favourable vote of four fifths of its members
Codelco CEO is appointed by the Board who also delegate the powers required for his position. He is responsible for implementing the Board's agreements and overseeing all the company's productive, administrative and financial activities.
Budget
Codelco's annual budget is approved by a Supreme Decree jointly issued by the Ministries of Mining and Finance
Supervision
Codelco is overseen by Chile's National Comptroller's Office (Contraloría General de la República), through the Chilean Copper Commission.
The Company is registered with the Superintendency of Securities and Insurance (SVS), under No. 785. It is subject to the provisions under the Securities Market Law, and therefore has to submit to the SVS and the general public the same information required for all publicly traded companies.
